In a significant development, Sri Lanka’s top court has delivered a groundbreaking verdict, declaring former president Gotabaya Rajapaksa and his brother Mahinda, along with 11 other leaders, responsible for the nation’s most severe financial crisis. The ruling, based on their “actions, omissions, and conduct,” highlights their role in sparking the crisis that led to unprecedented economic challenges in 2022.
The financial turmoil saw soaring inflation, depleted foreign reserves, and critical shortages of fuel, food, and medicine, prompting widespread public protests that ultimately led to the downfall of Mr. Rajapaksa. Despite his subsequent return to Sri Lanka in September 2022, the latest ruling has underscored the accountability of the Rajapaksa brothers and others for mishandling the economy.
While the court’s decision on Tuesday imposes no immediate penalties, apart from an order to cover the petitioners’ legal fees, experts suggest that it may open the door for additional lawsuits. Transparency International Sri Lanka, along with other activists, filed the case, resulting in a 4-1 split verdict. The majority opinion emphasized that the leaders violated the fundamental rights of Sri Lankans by mismanaging the economy.
Former finance minister Basil Rajapaksa and two ex-central bank governors were among the 11 officials held responsible in addition to the Rajapaksa brothers. The court’s ruling firmly asserted that the respondents could not evade responsibility by labeling their decisions as mere policy choices, emphasizing that they possessed the authority to prevent the calamity given their full knowledge.
Transparency International Sri Lanka stated, “It is clear that they did not act and take all measures to remedy the situation in the public interest.”
During the peak of the crisis, Sri Lankans endured daily power cuts lasting up to 13 hours, leading the country to declare bankruptcy last year. Despite securing a $3 billion (£2.4 billion) bailout from the International Monetary Fund (IMF), Sri Lanka is still grappling with the aftermath of the crisis. The nation, facing a total foreign debt of $46.9 billion as of November 2023, with 52% owed to China, its largest lender, is obligated to meet stringent targets under the IMF agreement. The repercussions of this ruling are poised to have far-reaching implications for the political and economic landscape of Sri Lanka.